OpenBazaar is an open source project to create an online peer to peer decentralised marketplace using Bitcoins

Concept

OpenBazaar is an open-source, decentralised marketplace where users can buy and sell products using Bitcoin

As OpenBazaar is decentralised, the platform does not operate like most typical e-commerce sites. Instead, users download a copy of OpenBazaar onto their computers (decentralised) where they can browse, buy and sell products

The platform removes the middleman with their restrictions and fees, allowing users to directly carry out transactions with the other party

In order to avoid transactions fees incurred by PayPal or card transactions, OpenBazaar uses Bitcoin – the only payment method currently accepted on the site

Like any other peer-to-peer marketplace, trust between buyer and seller is crucial. Buyers can opt to use a peer-voted trusted moderator, who witnesses the transaction and creates a multi-signature account between the three parties. Two of the three parties are required to agree before any money can be moved

Users are welcome to suggest and contribute to new code and ideas through the developer resource page

OpenBazaar also operates a Slack room for users to ask questions or get a node up and running

Consumer Benefits

Private: users can reveal as much or as little personal information as they choose

Free: no membership or transaction fees. However in the case of a dispute, users who use moderators are warned that they may pay third parties; although these are not forced to charge fees, nor are users forced to use moderators

Secure: escrow system for Bitcoin payments (multi-signature)

Evolving: marketplace based on user contributions and cod

How To Use

Creating an account:

Users download a copy of OpenBazaar (available on Windows, OS X and Linux)

When running the programme, users are asked a couple of onboarding questions such as language, country and preferred currency

Users then create their own profile page with a theme and avatar before reading a disclaimer agreement

Each Openbazaar page has a long string of characters. These can be customised (handles) to create a shorter and memorisable page name

Users are free to browse OpenBazaar. By default, the NSFW filter is turned on, removing any NSFW items listed by vendors. If needed, users may switch this off

Favourite vendors can be starred and stored for later

Buying an item:

After choosing an item to buy, the user enters an address and checks if the vendor ships to their country

Users are asked if they already have a Bitcoin wallet and can easily set one up in a matter of minutes if they don’t

Two payment methods are offered:

Direct payment – where the buyer pays the vendor directly

Moderated payment – where the buyer sends the money into an escrow account, witnessed by a moderator, which is released once the transaction is finished

Users can find information about trustworthy moderators on the OpenBazaar moderator forum (Reddit)

A QR code is shown which can be scanned (mobile Bitcoin wallet) or opened on another page for a local wallet (examples shown below)

Illustration

An example of how OpenBazaar trade cycle differs to that of Amazon or eBay:

Browsing on OpenBazaar (middle) and an example of transaction (bottom)